The
following items are
Hot Topics that we have
saved online from the
"STAYING
IN TOUCH"
Newsletter we send out
to our clients bi-yearly.
The information is compiled
and copyrighted by The
Insurance Brokers Association
of Ontario. We
hope you find the material
useful.

Drinking
and driving is not
only illegal, it
is socially and
morally irresponsible.
Despite the horrific
costs of impaired
driving, measured
not only in lives
lost, injuries sustained
and damage to property,
the practice still
continues.

Many
Ontario drivers
don't realize
they lose important
insurance protection
if they are convicted
of a drinking
and driving offense.
The financial
consequences that
they and their
families will
suffer in terms
of loss of coverage's
can be considerable.

Did
you know, your
insurance company
will not pay for
loss or damage
to your vehicle
if you are unable
to maintain proper
control of your
vehicle because
you are driving
under the influence
of intoxicating
substances? Likewise,
your insurance
company will not
pay for loss or
damage if you
are convicted
of an offence
such as impaired
driving, driving
with more than
80mg of alcohol
in the blood or
if you refuse
to provide a breath
sample.

Whether
you drive a car,
motorcycle, snowmobile
or all-terrain
vehicle, you could
face life-long
financial devastation
by losing your
income replacement
benefits if you
suffer a critical
injury, or, at
the very least,
you could destroy
your vehicle and
get nothing for
the value of it.

Please
don't drink and
drive.

If
you are involved
in an accident
and are convicted
of a drinking
and driving offense,
your Ontario Automobile
Insurance policy
will not pay:

In
an effort to reduce
accidents and save
lives, the Canadian
Coast Guard introduced
new regulations
for all power driven
pleasure craft last
year. A summary
of the highlights
follows:

New
Age and Horsepower
Regulations
(as of April 1,
1999)

No
one under
12 years of
age can operate
a boat of
more
than 10 horsepower
unless accompanied
and directly
supervised
by a person
16 years of
age or older.

A
person between
the ages of
12 and 16
cannot operate
a boat with
more
than 40 horsepower
unless accompanied
and directly
supervised
by a person
16 years old
or older.

A
person under
16 years of
age is prohibited
from operating
a personal watercraft
(PWC).

New
Recreational Boat
Operator Competency

To
keep our lakes
and waterways
safe, drivers
of power driven
pleasure craft
will be required
to show proof
of competency
to operate such
a craft. Because
of the large number
of boaters on
the waterways
today, a graduated
system has been
put into place.
You should be
aware of the following
regulations:

Effective
September
15, 1999,
a person born
after April
1, 1983 will
require proof
of competency
on board to
operate any
boat fitted
with a motor;

Effective
September
15, 2002,
any person
operating
a boat fitted
with a motor
and less than
4 meters in
length (including
PWC), will
require proof
of competency
on board;

Effective
September 15,
2009, all operators
will require
proof of competency
on board.

These
regulations also
apply to non-
residents operating
their pleasure
craft after 45
consecutive days
in Canadian waters.
An operator's
card or its equivalent
issued to a non-
resident by their
state, will be
considered as
proof of competency.

What
is Proof of Competency?

Proof
of competency
can take three
forms:

Proof
of having
taken a boat
safety course
prior to April
1, 1999;

A
pleasure craft
operator card
from a Canadian
Coast Guard
accredited
course provider
following
successful
completion
of an accredited
test. Boaters
must receive
a mark of
75% or more
to obtain
this card,
which is good
for life;

The
Graduated Licensing
system was put
in place in Ontario
a couple of years
ago to cut the
risks new drivers
face. Statistics
show new drivers
are more likely
to get into automobile
accidents which
are the leading
cause of death
for people between
the ages of 16
and 24.

The
program is divided
into three distinct
license levels:
One, Two and a
Full Drivers License.

Level
One licensees
must be at least
16 years of age,
pass an eyesight
test and pass
a written test
of their understanding
of the rules of
the road. There
are five other
Level One conditions:

a
fully licensed
driver, licensed
at least four
years, must
accompany
drivers in
the front
seat at all
times and
that person
must have
a blood alcohol
level less
than .05%;

the
driver's own
blood alcohol
level must
be zero;

drivers
must not drive
between midnight
and 5 a.m.;

a
seat belt
must be available
for each occupant;
and

drivers
are not allowed
to operate any
vehicle on Ontario's
400-series highways
or on Ontario's
high speed expressways,
such as the
Queen Elizabeth
Way or the Don
Valley Parkway.

Level
One lasts a minimum
of 12 months and
a maximum of five
years, but can
be reduced to
eight months if
the new licensee
successfully completes
an Approved Driver
Education Course.

Level
Two licensees
must pass a road
test after completion
of Level One and
can expect to
stay in the second
phase for a minimum
of 12 months.
There are two
conditions for
this level:

drivers
must have a
blood alcohol
level of zero;
and

a
seat belt must
be available
for each occupant.

To
qualify for a
Full License,
a licensee must
pass a road test
at the end of
Level Two. For
new drivers in
Ontario, it takes
at least 20 months
to earn full driving
privileges.

If
the police stop
a Level One or
Level Two driver
for any reason,
and the driver
is charged with
and convicted
of breaking any
of the above conditions,
that driver's
license will be
suspended for
30 days.

We've
seen it all when
it comes to unpleasant
vacation problems,
especially those
that involve air
travel. Not only
can they be costly,
they could spoil
your vacation.

Here's
a checklist to
help prevent common
travel problems
from happening
to you.

Make
a list of
what you are
packing and
keep it with
you in your
carry- on
bag. If checked
bags are lost
or stolen,
this list
can help identify
your property
and let you
know if anything
is missing.

Always
carry your
valuables
and important
documents
including
money, traveler's
cheques ,
credit cards
and driver's
license with
you. Also
keep jewellery,
keys, medications
and cameras
with you since
many airlines
refuse to
accept responsibility
for these
items if checked.

Be
sure to lock
your bags.
This helps
avoid accidental
openings and
discourages
theft. Since
small luggage
locks can
be opened
and closed
without your
knowledge,
any loss may
not be detected
until it's
too late.
We suggest
"zip
ties"
be used. This
way if someone
tampers with
your luggage
it will be
obvious and
you can present
your claim
immediately.

Always
remove all
old baggage
claim checks
and destination
tags to help
avoid incorrect
routing.

Identification
helps. According
to airline
carriers,
correctly
identified
items are
returned to
their owners
"most
of the time".
Bags should
have your
name, telephone
number and
address clearly
marked both
inside and
outside.

If
your luggage
is lost, call
the airline
daily for
an update
on your missing
bags. After
five days
you should
file a claim
based on the
assumption
your bag or
bags are lost.
When filing
a claim, itemize
the contents
of your bag(
s) along with
their estimated
value, attach
copies of
any receipts
you may have
and include
a copy of
your plane
ticket and
baggage claim
checks. As
a word of
caution, you
may have to
wait up to
six months
to be reimbursed
and don't
expect to
receive the
full amount
you requested.

Read
your airline
ticket carefully.
Many have
a clause which
limits the
amount paid
on lost items
based on the
weight of
the article.
Usually airlines
pay $9.07
per pound.
Obviously
this is not
enough when
it comes to
jewellery.
If your luggage
containing
3 pounds of
expensive
jewellery
was lost,
your claim
is limited
to $27.21
U.S. Talk
to us about
other options.

Finally,
remember goods
illegally
acquired or
not declared
at customs
may not be
covered by
your insurance
company if
lost or stolen.

Whenever
you travel by
air, train, bus
or ship, always
use common sense
and follow these
tips to prevent
a loss. Your policy
may have limitations
or deductibles.
If you have any
doubts or questions,
please check with
us before you
travel to make
sure your possessions
are adequately
insured. Enjoy
your trip.

It's
affecting drivers
around the globe.
It claims hundreds
of lives every
year - and Canada
is currently feeling
its monstrous
grip.

It's
called road rage,
a condition that
often involves
anger or violence
associated with
on-road driving
activities. Many
government agencies
have determined
that road rage
is not a myth
or an invention
of the media.
Rather, it's a
real and serious
problem that manifests
itself through
bizarre and often
violent behaviour.
Since 1998, in
Canada alone over
12,000 road rage
incidents have
been reported
in the media!

What
can be done? Most
experts agree
that the first
step is to prepare
yourself so you
will not be the
next victim. This
means avoidance
at any cost. You
never know if
the driver beside
you is a ticking
bomb or has concealed
weapons in his
or her vehicle.
It's best to avoid
any altercation
with other motorists
- period! Governments
and other groups
are currently
trying to solve
this problem through
regulations, enforcement
and increased
penalties. Solutions
take time. Don't
become a victim
- take preventative
measures now!

Here
are some Do's
and Don'ts that
you can use to
prevent a road
rage attack:

DO.....

move
over to allow
tailgaters to
pass

allow
plenty of time
for any trip
you take

leave
law enforcement
to the authorities

use
the passing
lane only to
pass

contact
police with
a description
of the vehicle,
licence number
and driver if
you are confronted
with road rage

ignore
gestures from
other drivers

avoid
eye contact
with other motorists

be
considerate
and courteous

DO
NOT.....

tailgate
or flash your
lights at other
drivers

insist
on the right
of way if challenged
by another driver

make
eye contact,
hand gestures
or show irritation
with aggressive
drivers

assume
all foolish
or aggressive
acts by other
motorists are
intentional

Insurance
fraud occurs when
someone makes
an insurance claim
that is completely
false or files
a claim for more
than the value
of the goods actually
lost, stolen or
destroyed. Fraudulent
claims affect
the cost of everyone's
insurance. The
Canadian Coalition
Against Insurance
Fraud estimates
that $1.3 billion
worth of insurance
claims that are
paid in Canada
every year are
fraudulent. This
works out to 10-
15% of every dollar
you pay for insurance.

If
someone you know
is committing
insurance fraud
on a home, car
or business policy,
you can report
it to Crime Stoppers.
Crime Stoppers
is an international
non- profit civilian
program that assists
police in solving
crimes through
tips reported
by ordinary citizens
who have knowledge
or suspicion that
crime has taken
place. If your
tip helps the
police or an insurance
company catch
an insurance fraud,
you may be eligible
for a cash reward.
Your call will
remain completely
anonymous.

The
Insurance Brokers
Association of
Ontario has supported
Crime Stoppers
for many years.

An
innovative alliance
between Crime
Stoppers and the
Canadian Coalition
Against Insurance
Fraud, which began
in Ontario in
1995, to report
insurance fraud
tips has resulted
in 51 arrests,
49 denied claims
and has prevented
the payment of
more than $1.2
million worth
of fraudulent
home, car and
business insurance
claims across
Canada in the
past 5 years.

"The
message of the
Crime Stoppers
program is They
Cheat /You Pay,"
said Maid Mary
Lou O'Reilly,
Executive Director
of the Coalition.
"With the
level of support
we've seen for
our partnership
with Crime Stoppers,
we know that Canadians
understand this
message and they
no longer turn
the other way
when a neighbour
brags about 'ripping
off the insurance
company.' They
know what it's
costing all of
us."

It
is important for
everyone to help
prevent insurance
fraud and in doing
so, help reduce
the premiums we
pay.

In
Ontario all new
drivers, regardless
of age, must complete
a two level "Graduated
Licencing"
program before
they qualify for
full licence privileges.

These
drivers have a
maximum of five
(5) years from
the start date
of their Level
One licence to
earn full licence
privileges. If
they do not receive
their Class G
licence (full
licence) within
this 5 year period,
they must reapply
and start the
licencing process
over again. According
to information
provided by the
Ministry of Transportation,
an estimated 125,000
Ontario drivers
will see their
Level One and
Level Two licences
automatically
expire this year.

If
you received your
Level One or Level
Two licence in
1994/ 95 and have
not "graduated"
to a Class G licence,
your licence may
have already expired.
This means you
could unwittingly
end up driving
without a licence.
Not only is this
against the law,
but driving without
a valid licence
invalidates your
insurance coverage.

If
this applies to
you, call your
nearest Ministry
of Transportation
Test Centre to
book your appointment.

At
4 a. m. one morning,
Dave and his family
were awakened
by their smoke
alarms."I've
had emergency
training, but
when I crawled
on my hands and
knees and opened
the bedroom door,
I was absolutely
amazed at the
clouds of smoke
in my home. If
it hadn't been
for the smoke
detectors, none
of us would be
here today."
Dave and his family
were fortunate,
they were able
to crawl to the
door, get out
of the house and
call the fire
department.

The
fire in Dave's
home was caused
by a crack in
the electrical
cable coming into
his home, which
short- circuited
and the arcing
caused the subsequent
fire, which began
at the electrical
box and moved
through the false
ceiling of his
basement's recreation
room. Dave and
his family escaped
in their pyjamas.
At this point,
it is important
to note that Dave
had done all the
correct things
with his insurance.
He had filled
out the appropriate
forms and was
insured to what
he believed was
to value - $150,000
on his home and
$110,000 on his
contents. Because
the damage to
the basement weakened
the foundation,
Dave's insurer
paid $170,000
to replace the
dwelling since
he had the replacement
value clause in
his policy.

Contents
were an entirely
different matter.
Dave said the
most important
thing you have
to remember, is
that whatever
value you insure
for includes sales
tax. Therefore,
he suggests that
you remember whatever
amount of insurance
you have on contents,
the limit is approximately
87 per cent of
that value since
sales tax is required
to be paid. Most
people would admit
that $110,000
on contents and
$150,000 on one's
home is more than
adequate - not
according to Dave.

He
remembers some
of the immediate
out- of- pocket
expenses for which
he was not prepared
- two pairs of
glasses, three
sets of contact
lenses, dental
retainers and
prescription drugs.
He also found
it surprising
that he had to
hire a locksmith
to come and cut
new keys for his
cars, which had
to be broken into
and pushed out
of the way for
the fire department.

Other
things, such as
identification,
licenses, credit
cards, and passports
had to be replaced.
They had no keys,
no place to live,
no identification
and no credit
cards. His insurer
responded within
hours with a cheque
for $3,000 to
tide them over
while they found
temporary living
quarters and shopped
for clothes.

Dave
is not wealthy,
does not have
extravagant tastes,
but he does insist
that insurance
on contents be
increased to adequately
cover his possessions.

May
we suggest that
you closely review
the value of all
your contents
including personal
items, a partial
list of which
has been mentioned
above, to ensure
that in the event
of accidental
loss, your insurance
will be in a position
to replace all
your goods. Dave's
comments were
that the least
of his worries
were things like
jewellery - he
was happy to get
out alive.

As
a note, when Dave's
house was re-
built, he did
insure it and
his contents fully
to value and within
a few months of
moving back in,
thieves in broad
daylight entered
his home and stole
most of his new
electronic equipment,
stereo, VCR, TV
including some
items of jewellery
that he had replaced
for his wife.
Dave's comment
however, is if
anyone wants to
hear why they
should insure
to value, he'd
be only too happy
to tell them.

As
you've no doubt
recently experienced
or heard, Canadians
are driving their
mouses to online
shopping sites
in greater numbers.
Consumers are
looking, comparing
and buying stuff
for a number of
reasons which
include: saving
time, perceived
and real savings,
convenience and
thrill. If you
have yet to conduct
a purchase over
the internet,
chances are that
you will in the
near future, so
the following
is a little something
for you to consider.

There
are estimates
that online transactions
could top $40
billion by 2002.
With this much
e-commerce going
on, there is a
real fear that
individuals may
be giving up sensitive
information they
shouldn't.

Security
and privacy issues
can be confusing
and difficult
to understand.
When was the last
time you went
to a site to review
these policies
of the company
you were thinking
about transacting
business with?
Was there a privacy
policy at all?
Did you read it?

Before
you blindly enter
a site, here are
some questions
you may want to
ask yourself:
Is knowing that
the information
you supply may
be shared with
other companies
important to you?
Can you change
your mind at a
later date about
the information
you supplied?
Does the site
use "cookies"
or other ways
to track your
behaviour? Will
the site work
with cookies disabled?
How does the company
protect the information
you have supplied
them? Does the
company provide
a question and
answer section
on their site
giving you this
level of comfort?

Companies
wanting your business
should provide
you the answers
you require at
well-constructed
web sites in helpful
and easy to understand
language. But
remember, it's
up to you to do
the research.

Be
informed before
you transact!
For additional
helpful information
try the Ontario
Privacy Commissioner
and go to the
"If you wanted
to know"
section.

When
it comes to insurance
matters for you,
your family or
your business,
you can count
on us for guidance
and informed advice.
With constant
change touching
all aspects of
our lives, it's
reassuring to
have someone you
can trust.

We
continually upgrade
our professional
knowledge through
seminars and courses.
We put service
and attention
to detail first
on our list -
and yours. We
answer your insurance
questions. We
provide the best
possible coverage
at the best possible
price. And, we
work for your
best interests
every day of the
year.

From
choosing a policy
to assisting you
with your claim,
we're proud to
be your insurance
broker.

There
are some very
serious contractual
gaps in coverage
for rental vehicles,
particularly when
you are renting
in the United
States. People
who do not own
their own vehicles
need to be extremely
careful.

Even
if you purchase
their Collision
Damage or Physical/
Loss Damage Waivers,
some rental car
contracts exclude
the following:

theft
of the vehicle

glass,
tire and undercarriage
damage

animal
collision

flood
and hail damage

damage
above the windshield

Incredibly,
some rental contracts
even include a
contractual shift
of liability to
the customer.
Each car rental
company, for their
own reasons, provide
certain coverages
and exclude others.
The above list
is not complete
and it is not
intended to criticize
any particular
car rental company.
It is mentioned
here to warn renters
of possible shortcomings
in the rental
contract process.

If
you own your own
vehicle, we suggest
your best strategy
is to contact
us and purchase
the OPCF 27 rider
on your personal
policy. If you
are covered under
a business policy
(and the business
owner agrees to
cover you), we
suggest the OPCF
27b rider. These
riders will extend
your coverage
on the same basis
provided by your
standard automobile
policy.

Our
advice whenever
you rent a car
is to read the
contract carefully.
Don't assume you're
fully covered
by purchasing
the rental company's
Physical/ Loss
Damage Waiver
coverage. For
your peace of
mind, talk to
us about including
this coverage
on your own auto
policy.

It's
the most convenient
and inexpensive
way to know you're
adequately covered.
Ask about the
limits available.

Carbon
monoxide is called
the silent killer
- and for good
reason. This colourless,
odorless and tasteless
gas overcomes
and kills hundreds
of people each
year.

Carbon
monoxide is a
poisonous gas
that is created
by the incomplete
combustion of
any fossil fuel.
Furnaces, wood
stoves, fireplaces,
gas appliances
(stoves, ovens,
clothes dryers)
and water heaters
are all common
sources of carbon
monoxide. Faulty
ventilation and
malfunctioning
appliances can
cause carbon monoxide
to build up in
your home. That's
why the installation
of a carbon monoxide
detector in your
home is crucial.

These
detectors measure
the level of carbon
monoxide present
in the atmosphere
in parts per million.
When the sensor
detects a predetermined
level of the gas
in the air an
alarm sounds.

When
choosing a carbon
monoxide detector
always look for
the Underwriters
Laboratories (UL)
approved logo
on the unit before
you buy. Once
purchased, carefully
read the instructions
for proper installation
and follow all
maintenance suggestions.
Although carbon
monoxide detectors
are important
for home safety,
they should not
replace an annual
inspection of
heating and other
gas producing
appliances by
a competent professional.

Ever
wonder where your
premium dollars
go, especially
when you don't
make a claim?

Well,
in the aftermath
of the ice storm
of 1998, by far
the worst natural
disaster in Canadian
history, over
840,000 insurance
claims were handled.
At the peak of
the storm more
than five million
people were without
power and claims
departments were
receiving as many
as ten calls per
minute. Insurance
companies worked
throughout this
ordeal in state-of-emergency
conditions with
adjusters and
field staff often
working out of
independent broker
offices, personally
visiting customers'
homes to inspect
damage and get
repairs started
as quickly as
possible.

Insured
losses totaled
$1.5 billion and
it's testimony
to the industry's
prudent long term
management of
your premium dollars
that not a single
insurance company
failed as a result
of the huge claim
payout.

As
a matter of interest,
a study by Standard
& Poors released
in September 1998,
found claim activity
pumped nearly
$900 million into
the economies
of Ontario and
Quebec. The study
also determined
that insurer payments
led to the creation
of some 16,000
jobs and generated
over $330 million
in tax revenue.

The
people of eastern
Ontario and Quebec
have very positive
feelings about
their insurance
brokers and the
companies they
represent as a
result of their
handling of the
storm's devastation.
They are now aware
of the true value
of adequate insurance
coverage. Those
of us lucky enough
to escape the
storm's wrath
now know precisely
where our premiums
have gone.

Who
Pays
For
My Lost
Income
If I
Am In
An Automobile
Accident
And
Cannot
Work?

Every
day on average,
there are over
600 automobile
accidents in Ontario.
If you are injured
in one and cannot
work, your auto
policy provides
an income replacement
benefit to partially
replace the income
you have lost
. The policy will
pay 80% of
your net income
based on your
pre-accident employment
earnings. Net
income is basically
your take home
pay (gross pay
less employment
insurance premiums,
CPP payments and
income tax deducted).
The maximum
payment is $400
per week.
For most people,
this amount is
adequate. However,
if your income
is above average,
you should consider
purchasing increased
benefit coverage
from us. It is
important to note
that any payments
made from other
sources (such
as your employer
or any private
disability plan)
are deducted from
the amount payable.

Here's
how it works.
If you are injured
in an automobile
accident, you
may be eligible
to get a payment
every two weeks
to partially replace
the income you
have lost. You
can qualify if
you suffer physical
or psychological
injuries within
two years of an
accident. The
first seven days
of your disability
are not covered
by this plan.
Payments will
begin within 14
days after the
company has received
your completed
benefits application
form and if your
disability continues,
a payment will
follow at least
every two weeks.
You may require
a certificate
from a qualified
medical person
and the insurance
company will pay
for this certificate.
Also, you are
expected to participate
in rehabilitation
or treatments
that are reasonable,
and if you refuse,
benefits can be
reduced by 50%.
There are lesser
income benefits
available to caregivers
(such as full-
time homemaker
who looks after
dependent children)
and non- earners
(such as a full-
time student).
If this describes
your situation,
we can explain
the various benefits
available.

We
urge you to consider
your own situation
and minimum income
needs in the event
you became disabled
in an automobile
accident. Benefit
coverage beyond
the $400 weekly
maximum is available
at a reasonable
cost. Contact
us for more information.

No
one wants to go
through the horror
of a home break-in.
Unfortunately,
over 108,000 breaking
and entering offences
were committed
in Ontario in
1997 (Statistics
Canada). Here
are some crime
prevention strategies
compiled by the
Metropolitan Toronto
Police and the
Insurance Brokers
Association of
Ontario to help
you reduce your
risk and increase
your peace of
mind.

OUTSIDE
YOUR HOME:

keep
shrubs and bushes
trimmed back
so your home
is visible from
the street and
by neighbours

keep
basement windows
clear so you
can see in and
out

outside
areas should
always be well
lit, especially
near doors and
windows

take
down old TV
antennas as
they can be
used as ladders
by burglars

never
leave items
such as ladders,
shovels and
pieces of wood
around your
house

keep
your garage,
storage and
garden sheds
locked

make
sure second
floor windows
and doors have
functioning
locks and are
well secured

make
your home look
occupied at
all times (have
neighbours pick
up mail and
always leave
the lights on)

get
to know your
neighbours (if
they know your
routine, they
can report any
unusual activity
and may be witnesses
if you do have
a break- in)

INSIDE
YOUR HOME:

keep
lights on timers
(a television
on a timer is
a greater deterrent)

never
divulge information
to telephone
callers you
don't know

never
attach your
name, address,
or licence number
to your key
chain

install
durable dead
bolts that extend
at least one
inch into the
door frame